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Former Chicago White Sox executive David Wilder and former team scouts L. Oquendo Rivera and Victor Mateo were indicted in the U.S. on federal fraud charges.

Wilder and Rivera were charged with seven counts of mail fraud. Mateo was charged with three.

According to the Chicago Sun-Times, the three men allegedly took approximately $400,000 off the contracts from 23 Latin American prospects from 2004 to 2008.

"The defendants were supposed to recruit players by paying amounts of money that matched their skills and were no greater than the amount needed to sign the players,” said U.S. Attorney Patrick Fitzgerald. “Instead, the indictment alleges that the defendants secretly inflated those signing amounts to fund kickbacks for themselves."

It was not disclosed what Mateo and Rivera used their pocketed cash for, however nbcchicago.com revealed that Wilder used his money to fund a gay bar in Phoenix, which was apparently losing money.

According to the report, the gay bar had lost $570,000 and was closed down by January 2008.

It was also reported that Wilder had other financial troubles.

He was previously the owner of six houses -- two of which he's sold and also filed a petition to lower his child support.

In the U.S., each count of mail fraud has a maximum penalty of 29 years imprisonment and a $250,000 fine.